Slide 1: Financial Results for the year ended March 31, 2015
INPEX CORPORATION Financial Results for the year ended March 31, 2015 May 15, 2015
Slide 2: Agenda
Agenda Corporate Overview Outlook Financial Results for the year ended March 31, 2015 Consolidated Financial Forecasts for the year ending March 31, 2016 1
Slide 3: Cautionary Statement
Cautionary Statement This presentation includes forward‐looking information that reflects the plan and expectations of the Company. Such forward‐looking information is based on the current assumptions and judgments of the Company in light of the information currently available to it, and involves kn
Slide 4: Corporate Overview
Corporate Overview Toshiaki Kitamura Representative Director, President & CEO
Slide 5: FY 2015/03 Corporate Highlights (1/2)
FY 2015/03 Corporate Highlights (1/2) ■ Financial Results ‐ Net sales ¥1,171.2billion (12.2% decrease YoY) (FY2015/03) ‐ Net profit ¥77.8billion (57.6% decrease YoY) ■ Ichthys ‐ Commenced major subsea facility installation ‐ Commenced deepwater pipelay ‐ Commenced production well drilling ‐ Project
Slide 6: FY 2015/03 Corporate Highlights (2/2)
FY 2015/03 Corporate Highlights (2/2) Approach to downfall in crude oil prices Implementation of cost reduction through rescheduling of exploration and development activities (activity deferrals, etc.) Acquisition of new exploration blocks WA‐502‐P (May)/WA‐504‐P (June), offshore Western Austral
Slide 7: Ichthys LNG Project (1/3)
Ichthys LNG Project (1/3) Offloading of LNG plant module (January/2015, Proved reserves: Approx. 970 million Darwin) BOE (Based on INPEX’s participating interest of 62.245%) Production volume (expected): ‐8.4 million t/y of LNG ‐Approx. 1.6 million t/y of LPG ‐Approx. 100,000 bbl/d of condensate
Slide 8: Ichthys LNG Project (2/3) Offshore Facilities
Ichthys LNG Project (2/3) Offshore Facilities Commencement of pipelaying by Castorone Commencement of drilling of production wells in deeper water area (February/2015) (February/2015) Major works for Offshore Facilities done since FID and plans up to 2016 2012 2013 2014 2015 2016 Detailed engineerin
Slide 9: Ichthys LNG Project (3/3) Onshore Facilities
Ichthys LNG Project (3/3) Onshore Facilities Onshore LNG plant site in Darwin, Australia June/2009 April/2015 May/2012 Major works for Onshore Facilities done since FID and plans up to 2016 2012 2013 2014 2015 2016 Detailed engineering / procurement Fabrication of LNG plant modules Construction of s
Slide 10: Abadi LNG Project
Abadi LNG Project Location of Masela Block (Abadi gas field) AMDAL (Environmental Impact Assessment) Tanimbar Islands INDONESIA process Saumlaki ‐ Received environmental permit from the Indonesian Ministry of Environment in June EAST TIMOR Masela Block Arafura Sea 2014. Abadi gas field Internal
Slide 11: Topics for FY 2015/03 (1/2) Acquisition of new assets
Topics for FY 2015/03 (1/2) Acquisition of new assets Acquired the ADCO Onshore Concession in April 2015 Participating interest: 5% Contract period: 2015 through 2054 (40 years) Signing Ceremony of the ADCO Onshore Concession Agreement (April 2015) Operator: ADCO (Abu Dhabi Company for Onsho
Slide 12: Topics for FY 2015/03 (2/2)
Topics for FY 2015/03 (2/2) Progress of the existing projects and acquisition of new exploration blocks (Results in the 2nd. half of FY 2015/03) ナダ Abu Dhabi: Umm Lulu Oil Field U.S.: Lucius Oil Field Brazil: BM‐ES‐23 in October 2014 and Nasr Oil – INPEX share: 7.75309%, – INPEX share: 15%, Petrobra
Slide 13: Net Production (FY 2015/03)
Net Production* (FY 2015/03) 500 409 408 400 5% 5% Main increase factors ・ Increase in the company’s entitlement in the Offshore Mahakam Block, Tangguh LNG (Thousand BOED) 300 41% 41% Project and others due to a decline in oil price (+7MBOED) Main decrease factors 200 6% 7% ・ Shutdown of the Van Gog
Slide 14: Proved + Probable Reserves and Reserve Indices
Proved + Probable Reserves* and Reserve Indices 5,000 4,477 4,500 4,256 Reserve Life**** 4,095 4,044 4,000 Reserve Replacement Ratio (3‐year average)***** 3,500 1,945 1,823 400% 1,610 1,907 350% 3,000 300% 255% 370% Million BOE 250% 2,500 200% 2,000 27.2 150% 100% 100% years 50% 1,500 2,532 0% 2,432
Slide 15: Outlook
Outlook Toshiaki Kitamura Representative Director, President & CEO
Slide 16: Responding to Lower Oil Prices (1/2)
Responding to Lower Oil Prices (1/2) Investments in FY 2015 & Investment Forecast for FY 2016 FY2015 investments (May 2014 forecast and actual) versus FY2016 investment forecast 12,000 11,250 11,000 10,000 9,381 9,030 9,000 8,000 (USD Millions) 7,000 9,900 6,000 5,000 8,464 8,240 4,000 3,000 2,000 1
Slide 17: Responding to Lower Oil Prices (2/2)
Responding to Lower Oil Prices (2/2) Mid‐ to Long‐term Growth Initiatives Progress in FY2015 and Plans for FY2016 UAE ADCO Onshore US Gulf of Mexico Concession Malaysia Lucius Oil Field ・Deepwater Block S UAE ・Deepwater Block R ADMA Block ・Umm Lulu Oil Field Suriname ・Nasr Oil Field Indonesia Block
Slide 18: Investment Plan
Investment Plan By Activity By Activity (Billions of Yen) (Millions of US$) (Billions of Yen) (Millions of US$ ) 1,200 12,000 1,100 1,084.0 1,029.7 11,000 9,612 1,000 962.9 9,381 10,000 (Actual) (Actual) 900 9,030 9,000 7,877 800 (Actual) 8,000 682.0 700 653.1 7,000 600 989.0 6,000 5,680 929.0 854.7
Slide 19: Net Production Volume Projection
Net Production* Volume Projection Target for the 2020s 1,000 1 million BOED Following the Ichthys start‐up etc., the total production volume 900 from existing projects will reach approximately 600 to 700 800 thousand BOED 600 to 700 700 600 (Thousand BOED) 548 512 500 408 400 5% 300 41% 200 7% 100 4
Slide 20: FY 2016/03 Outlook
FY 2016/03 Outlook Investment Plan Net Production Projects Development: Target production: Ichthys LNG Project progression 989 billion Yen 512 thousand BOED Optimization of development (104 thousand BOED plan for Abadi LNG Project Exploration: increase on FY 2015/03) 57 billion Yen Acqui
Slide 21: Financial Results for the year ended March 31, 2015
Financial Results for the year ended March 31, 2015 Masahiro Murayama Director, Managing Executive Officer Senior Vice President of Finance & Accounting Division
Slide 22: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended March 31, 2015 Apr. ’13 ‐ Mar. ‘14 Apr. ‘14 ‐ Mar. ‘15 Change %Change Net Sales (Billions of yen) 1,334.6 1,171.2 (163.3) (12.2%) Crude Oil Sales 858.7 730.4 (128.3) (14.9%) Natural Gas Sales (including LPG) 455.4 421.8 (33.5) (7.4%
Slide 23: Crude Oil Sales
Crude Oil Sales Apr. ‘13 ‐ Mar. ’14 Apr. ‘14 ‐ Mar. ’15 Change %Change Net Sales (Billions of yen) 858.7 730.4 (128.3) (14.9%) Sales volume (thousand bbl) 79,171 80,558 1,387 1.8% Average unit price of overseas 107.78 84.00 (23.78) (22.1%) production ($/bbl) Average unit price of domestic production
Slide 24: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr. ‘13 ‐ Mar. ‘14 Apr. ‘14 ‐ Mar. ‘15 Change %Change Net Sales (Billions of yen) 431.1 401.3 (29.8) (6.9%) Sales volume (million cf) 327,117 309,485 (17,631) (5.4%) Average unit price of overseas 13.09 11.36 (1.73) (13.2%) production ($/thousand cf) Average unit p
Slide 25: Statement of Income
Statement of Income (Billions of Yen) Apr. ‘13 ‐ Mar. ’14 Apr. ‘14 ‐ Mar. ’15 Change %Change Decrease in Sales Volume : (8.9) Decrease in Unit Price : (227.5) Exchange rate Net Sales 1,334.6 1,171.2 (163.3) (12.2%) (Depreciation of Yen) : +74.5 Others : (1.5) Cost of Sales 490.4 525.4 35.0 7.1% Gros
Slide 26: Other Income/Expenses
Other Income/Expenses (Billions of Yen) Apr. ‘13 ‐ Mar. ‘14 Apr. ‘14 ‐ Mar. ‘15 Change %Change Other income 50.7 101.7 51.0 100.6% Interest income 17.4 11.2 (6.2) (35.7%) Dividend income 9.2 6.6 (2.5) (27.7%) Gain on sales of marketable securities 10.3 18.1 7.8 75.6% Gain on transfer of mining right
Slide 27: Analysis of Net Income Decrease
Analysis of Net Income Decrease (Billions of Yen) (億円) 200 Main Factors; (8.9) ‐ Gain on transfer of mining rights +26.7 150 (Gain on transfer of the Ichthys upstream JV share, etc.) ‐ Foreign exchange gain +23.8 Foreign exchange loss 4.2 Apr. ’13 – Mar. ‘14 Foreign exchange gain 19.5 Apr. ‘14 – Mar
Slide 28: Balance Sheet
Balance Sheet (Billions of yen) Mar. ’14 Mar. ’15 Change %Change Available fund (Billions of yen) 1,263.2* Current assets 1,140.2 1,342.4 202.2 17.7% Breakdown • Cash and deposits : 922.6 Tangible fixed assets 951.7 1,497.6 545.8 57.3% • Long‐term time deposits : 120.2 • Marketable securities : 162.
Slide 29: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr. ‘13 ‐ Mar. ‘14 Apr. ‘14 ‐ Mar. ‘15 Change %Change Income before income taxes and minority interests 750.0 540.0 (210.0) (28.0%) Depreciation and amortization 50.9 52.5 1.6 3.1% Recovery of recoverable accounts under production sharing (capital expenditu
Slide 30: Financial Indices
Financial Indices Net Debt/Total Capital Employed (Net)* Equity Ratio** Mar.ʹ14 Mar.ʹ15 (16.8%) (31.9%) 69.1% 68.2% Mar.ʹ14 Mar.ʹ15 D/E Ratio*** * Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cash and deposits ‐ Public and corporate bonds and other debt securities (with determina
Slide 31: Consolidated Financial Forecasts for the year ending March 2016
Consolidated Financial Forecasts for the year ending March 31, 2016 Masahiro Murayama Director, Managing Executive Officer Senior Vice President of Finance & Accounting Division
Slide 32: Consolidated Financial Forecasts for the year ending March 2016
Consolidated Financial Forecasts for the year ending March 31, 2016 1st Half 2nd Half Full year Brent oil price ($/bbl) 65.0 65.0 65.0 Average exchange rate (¥/$) 120.0 120.0 120.0 Mar. ‘15 Mar. ‘16 Full Year (Actual) (Forecasts ) Change % Change Net Sales (Billions of yen) 1,171.2 1,249.0 77.8 6.6%
Slide 33: Sales and Investment Plan for the year ending March 31, 2016
Sales and Investment Plan for the year ending March 31, 2016 Mar. ’15 Mar. ‘16 (Actual) (Forecasts ) Change % Change Crude oil (thousand bbl)1 80,558 119,854 39,296 48.8% Sales Volume Natural gas (million cf)2 309,485 322,271 12,786 4.1% Overseas 242,807 252,417 9,610 4.0% 66,679 69,854 3,175 Japan
Slide 34: Net Income Sensitivities (1/2)
Net Income Sensitivities (1/2) Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net income for the year ending March 31, 2016 (Note 1) (The impact of Exchange Rate is shown in more detail below.) (Billions of yen) Crude Oil Price; $1/bbl increase (decrease) (Note 2
Slide 35: Net Income Sensitivities (2/2)
Net Income Sensitivities (2/2) Details on valuation of U.S. dollar‐denominated assets and liabilities The assets and liabilities denominated in the U.S. dollar are practically balanced in the following chart. However, a portion of assets is held as bonds denominated in the U.S. dollar (as shown